A trust can be a viable alternative to a will, especially if you prefer to share funds while you are still living. There are many and varied types of trusts to choose from in New Jersey, and it may help to hire an experienced attorney to help you select a plan that works well for you.
If you are interested in sharing your monies via a trust, legal aid may be nearby. Meeting with a capable New Jersey trusts lawyer could be a first step toward solidifying your loved ones’ financial future
Parties Involved in a Trust
The laws regarding trusts in New Jersey are part of the New Jersey General and Permanent Statutes §3B:3. A trust requires a settlor, res, beneficiaries, and a trustee. The settlor is the person who is putting the funds into the trust, and the res refers to the money within the trust. Beneficiaries are the persons who stand to benefit from the trust.
The trustee is the person who manages the trust and distributes funds to the beneficiaries. If living, the trustee can be the settlor, or they may appoint a third party. If necessary, the court might select an appropriate trustee.
Administration of a New Jersey Trust
In addition to the Uniform Trust Code, many laws relating to trust administration are part of the New Jersey Testamentary Additions to Trust Law, which begins at N.J. Stat. §3B:4-1. How a trust may is administered could depend on the type of trust. Problems may arise if the beneficiaries believe that the trustee is breaching its terms. New Jersey trustees have duties of loyalty, impartiality, and due care. Within the duty of due care is the obligation to invest the trust res wisely.
Per New Jersey law, a trustee is required to exercise reasonable care in a manner that would be typical of a prudent investor. The trustee must also comply with the terms of the trust document and engage in a good-faith effort to fulfill its purposes.
Removal of a Trustee in New Jersey
A trustee can be replaced for a variety of reasons. They may seek to withdraw from the position and possibly allow a co-trustee to assume full responsibility. Moreover, the court might discharge them from their position for violating the trust’s terms.
A settlor, co-trustee, or the beneficiaries may also petition the court to remove the trustee. A competent trusts lawyer in New Jersey may have familiarity with such matters and aid beneficiaries or other involved parties in petitioning to remove a trustee.
Contact a New Jersey Trusts Attorney
If you are interested in creating a trust to benefit your children, grandchildren, or other loved ones, it may be time to call an attorney. An experienced New Jersey trust lawyer may be able to explain your options clearly.
Make an appointment to consult with a local legal professional about your trust needs. An adept counsel may be able to answer your questions about the estate planning process and begin the process of establishing a trust.